Lending
Lending licenses for Texas fintechs
Texas licenses lending by product. A fintech offering personal loans, small-dollar credit or mortgages needs the license that matches the loan, unless it lends through a bank that does not.
Not legal advice. Rate limits, license categories and exemptions are detailed and change. Confirm your product's treatment with the regulator or with counsel.
Who licenses what
| Product | Regulator | Where the rules live |
|---|---|---|
| Consumer installment and personal loans above certain rate thresholds ("regulated loans") | Office of Consumer Credit Commissioner (OCCC) | Texas Finance Code, Chapter 342 |
| Payday and auto-title loans arranged through a credit access business | OCCC | Texas Finance Code, Chapter 393 |
| Motor vehicle retail installment sales and certain other consumer credit | OCCC | Texas Finance Code, including Chapter 348 |
| Residential mortgage lending and loan origination | Texas Department of Savings and Mortgage Lending (SML) | Texas Finance Code, Chapters 156 and 157 |
| Commercial (business-purpose) lending | Often no state lending license, but usury and other rules still apply | Texas Finance Code, including interest provisions in Title 4 |
Interest rates
Texas sets ceilings on interest through the Finance Code. Some ceilings are fixed, and some float with published indexes. A license often allows a lender to charge more than an unlicensed lender could. Getting the rate wrong can expose a lender to penalties that exceed the interest itself, so rate design is a legal question, not only a pricing one.
Bank partnerships
Many fintech lenders originate through a partner bank. The bank makes the loan under its own charter, and the fintech markets, services or buys the loans. The model can change which licenses apply, but it brings its own scrutiny: regulators and courts look at which party really bears the risk and benefits from the loan. The bank will expect a compliance program, fair-lending controls and oversight rights over you.
Federal rules that apply to every consumer lender
- Truth in Lending Act (Regulation Z): cost-of-credit disclosures, including the APR.
- Equal Credit Opportunity Act (Regulation B): no discrimination, and adverse action notices that explain a decline, including declines made by automated models.
- Fair Credit Reporting Act: rules for using and furnishing credit report data.
- Electronic Fund Transfer Act (Regulation E): rules for electronic repayments.
- UDAAP: the CFPB's prohibition on unfair, deceptive or abusive acts and practices, which reaches marketing, servicing and collections.
- Military Lending Act: special limits for loans to active-duty service members and their dependents.
Servicing and collections
Servicing and collecting on loans brings further obligations, including Texas debt collection rules and the federal Fair Debt Collection Practices Act where it applies. Plan for these when you design the customer journey, not after the first missed payment.
For the anti-money-laundering, privacy and data rules that sit beside lending law, see the compliance checklist.
Last reviewed 2026-09-17